The Danish feed manufacturer is further investing in the business unit in Ecuador, with the outlay set to be deployed in two phases: the first two lines will be ready for launch in 2022.
The investment includes new land, a transformation of the current factory layout, upgrade of existing pelletizing equipment, and four new lines for extruded feed as the company gears up to launch 'advanced' shrimp feed products, due to hit the market in 2022.
“We are planning for a new range of high performing products as well as new functional feeds targeting the unique farming practice and environmental parameters encountered in Ecuador. Furthermore, we see larger farmers in the market being ready to start up the process of co-designing tailored product ranges towards the markets in US and Europe focusing on both feed composition and environmental footprint, farming practice and quality of the resulting shrimp, enabling a targeted positioning of the shrimp towards retailers and end-consumers.
“This requires both more capacity but also more flexibility in our production set-up,” said Henrik Aarestrup, VP LATAM, shrimp and hatchery, BioMar Group.
The Ecuadorian shrimp export has undergone tremendous transformation during the pandemic, said the company.
“We believe the Ecuadorian shrimp sector is increasingly well positioned to continue to grow in the years to come, with a focus on value added products for consumers and sustainability. We are sure that a combination of extruded and pelletized feed solutions combined with increased flexibility on feed ingredients will offer the right opportunities for optimal feeding practices within different farming environments in Ecuador,” commented Aarestrup.
Shrimp feed footprint
In February this year, BioMar moved to strengthen its global position in the shrimp feed market by signing a partnership agreement with Viet-Uc, a leading player in Vietnam’s shrimp farming industry.
BioMar became the majority owner and was set to take operational charge of a relatively new feed factory previously owned by Viet-Uc.
The process of defining the partnership has been hindered by the persistent COVID-19 linked travel restrictions; however, all required regulatory approvals has now been completed, noted BioMar parent company, Schouw & Co, in a market outlook last month.
“The new partnership is expected to produce substantial synergies."
BioMar's owners added that long-term demand for farmed fish and shrimp generally seems sound.